Changes

===Judiciary===

===Judiciary===

[[File:Lausanne, Switzerland.jpg|thumb|The Federal Tribunal of Switzerland is based in Lausanne (pictured), in the Canton of Vaud.]]

[[File:Lausanne, Switzerland.jpg|thumb|The Federal Tribunal of Switzerland is based in Lausanne (pictured), in the Canton of Vaud.]]

The administration of justice is primarily a cantonal function. The Federal Tribunal is limited in its jurisdiction. Its principal function is to hear appeals of civil and criminal cases. It also hears complaints of violations of the constitutional rights of citizens and has authority to review cantonal court decisions involving federal law as well as certain administrative rulings of federal departments. However, it has no power to review federal legislation for constitutionality. The Tribunal's 30 full-time and 30 part-time judges are elected by the Federal Assembly for 6-year terms. The Federal Criminal Court is the court of first instance for criminal cases involving organized and white-collar crime, money laundering, and corruption, which are under federal jurisdiction. The Court’s 11 judges are elected by the Federal Assembly for 6-year terms.

The administration of justice is primarily a cantonal function. The Federal Tribunal is limited in its jurisdiction. Its principal function is to hear appeals of civil and criminal cases. It also hears complaints of violations of the constitutional rights of citizens and has authority to review cantonal court decisions involving federal law as well as certain administrative rulings of federal departments. However, it has no power to review federal legislation for constitutionality. The Tribunal's 30 full-time and 30 part-time judges are elected by the Federal Assembly for 6-year terms. The Federal Criminal Court is the court of first instance for criminal cases involving organized and white-collar crime, money laundering, and corruption, which are under federal jurisdiction. The Court's 11 judges are elected by the Federal Assembly for 6-year terms.

===Local Government===

===Local Government===

In recent years, Switzerland has seen a gradual shift in the party landscape. The rightist Swiss People's Party (SVP), traditionally the junior partner in the four-party coalition government, more than doubled its voting share from 11% in 1987 to 22.5% in 1999, and finally to 26.6% in 2003, thus overtaking its three coalition partners. This shift in voting shares ended the 44-year old "magic formula," the power-broking agreement of the four coalition parties, and gave a second seat in the 7-person Swiss cabinet to the Swiss People's Party at the expense of the Christian Democrats, now the weakest of the four major parties. For the first time in Swiss history, the SVP has two seats in the government, reflecting its new status as Switzerland's most popular party. As of the 2015 federal elections, the SVP received 29.4% of the popular vote and has 65 seats in the national council, records for the party.<ref>{{cite news|title=Anti-immigration party wins Swiss election in 'slide to the Right'|url=https://www.telegraph.co.uk/news/worldnews/europe/switzerland/11939953/Anti-immigration-party-wins-Swiss-election-in-slide-to-the-Right.html|accessdate=19 October 2015|work=The Daily Telegraph|agency=Reuters|date=19 October 2015}}</ref>

In recent years, Switzerland has seen a gradual shift in the party landscape. The rightist Swiss People's Party (SVP), traditionally the junior partner in the four-party coalition government, more than doubled its voting share from 11% in 1987 to 22.5% in 1999, and finally to 26.6% in 2003, thus overtaking its three coalition partners. This shift in voting shares ended the 44-year old "magic formula," the power-broking agreement of the four coalition parties, and gave a second seat in the 7-person Swiss cabinet to the Swiss People's Party at the expense of the Christian Democrats, now the weakest of the four major parties. For the first time in Swiss history, the SVP has two seats in the government, reflecting its new status as Switzerland's most popular party. As of the 2015 federal elections, the SVP received 29.4% of the popular vote and has 65 seats in the national council, records for the party.<ref>{{cite news|title=Anti-immigration party wins Swiss election in 'slide to the Right'|url=https://www.telegraph.co.uk/news/worldnews/europe/switzerland/11939953/Anti-immigration-party-wins-Swiss-election-in-slide-to-the-Right.html|accessdate=19 October 2015|work=The Daily Telegraph|agency=Reuters|date=19 October 2015}}</ref>

On December 10, 2003, [[Christoph Blocher]]—a self-made industrialist and main figure of the right-populist Swiss People's Party known for his strong opinions on asylum and migration and law and order issues—was elected to the cabinet by parliament, replacing the incumbent Christian Democrat Justice and Police Minister Ruth Metzler. The parliament also elected the Free Democrat Hans-Rudolf Merz to replace retiring Finance Minister Kaspar Villiger. Both Blocher and Merz were strong advocates of drastic public spending cuts in order to reduce the country's mounting $102 billion francs state deficit and staunch opponents to Switzerland's entering the European Union. On June 14, 2006, the Federal Council elected Doris Leuthard of the Christian Democratic Party. Leuthard replaced the retiring Joseph Deiss and has assumed the Economics and Trade portfolio that Deiss managed. Leuthard’s election and Deiss’ resignation did not change the dynamics of the Federal Council. Blocher was not re-elected in 2007.

On December 10, 2003, [[Christoph Blocher]]—a self-made industrialist and main figure of the right-populist Swiss People's Party known for his strong opinions on asylum and migration and law and order issues—was elected to the cabinet by parliament, replacing the incumbent Christian Democrat Justice and Police Minister Ruth Metzler. The parliament also elected the Free Democrat Hans-Rudolf Merz to replace retiring Finance Minister Kaspar Villiger. Both Blocher and Merz were strong advocates of drastic public spending cuts in order to reduce the country's mounting $102 billion francs state deficit and staunch opponents to Switzerland's entering the European Union. On June 14, 2006, the Federal Council elected Doris Leuthard of the Christian Democratic Party. Leuthard replaced the retiring Joseph Deiss and has assumed the Economics and Trade portfolio that Deiss managed. Leuthard's election and Deiss’ resignation did not change the dynamics of the Federal Council. Blocher was not re-elected in 2007.

The Constitution limits federal influence in the formulation of domestic policy and emphasizes the roles of private enterprise and cantonal government. However, the Confederation has been compelled to enlarge its policymaking powers in recent years to cope with national problems such as education, agriculture, energy, environment, organized crime, and narcotics.

The Constitution limits federal influence in the formulation of domestic policy and emphasizes the roles of private enterprise and cantonal government. However, the Confederation has been compelled to enlarge its policymaking powers in recent years to cope with national problems such as education, agriculture, energy, environment, organized crime, and narcotics.

The Swiss economy expanded by 2.7% in 2006, the fastest rate in six years, thus confirming sustained growth over the last four years. GDP growth was primarily due to the positive evolution of private consumption and expansion of investment in fixed assets and software. For once, all export industries benefited from increased demand from foreign markets. With a surplus of $9.6 billion (SF 11.7 billion), the Swiss trade balance reached unprecedented levels. On the inflation side, import prices increased more rapidly than exports.  

The Swiss economy expanded by 2.7% in 2006, the fastest rate in six years, thus confirming sustained growth over the last four years. GDP growth was primarily due to the positive evolution of private consumption and expansion of investment in fixed assets and software. For once, all export industries benefited from increased demand from foreign markets. With a surplus of $9.6 billion (SF 11.7 billion), the Swiss trade balance reached unprecedented levels. On the inflation side, import prices increased more rapidly than exports.  

Switzerland was ranked as the most competitive economy in the World Economic Forum’s 2006 Global Competitiveness Report for the first time, reflecting the country’s sound institutional environment, excellent infrastructure, efficient markets, competent macroeconomic management, world-class educational attainment, and high levels of technological innovation, which boost Switzerland's competitiveness in the global economy. The country has a well-developed infrastructure for scientific research, companies spend generously on research and development, and intellectual property protection is strong. Business activity benefits from a well-developed institutional framework, characterized by the rule of law, an efficient judicial system, and high levels of transparency and accountability within public institutions. Higher education and training are rapidly growing in importance as engines of productivity growth.

Switzerland was ranked as the most competitive economy in the World Economic Forum's 2006 Global Competitiveness Report for the first time, reflecting the country's sound institutional environment, excellent infrastructure, efficient markets, competent macroeconomic management, world-class educational attainment, and high levels of technological innovation, which boost Switzerland's competitiveness in the global economy. The country has a well-developed infrastructure for scientific research, companies spend generously on research and development, and intellectual property protection is strong. Business activity benefits from a well-developed institutional framework, characterized by the rule of law, an efficient judicial system, and high levels of transparency and accountability within public institutions. Higher education and training are rapidly growing in importance as engines of productivity growth.

While Switzerland is famous for its banking secrecy, the level of secrecy has significantly declined, and it has ended in several areas, because of international pressure.<ref>Shields, Michael (October 5, 2018). [https://www.reuters.com/article/us-swiss-secrecy/era-of-bank-secrecy-ends-as-swiss-start-sharing-account-data-idUSKCN1MF13O Era of bank secrecy ends as Swiss start sharing account data]. ''Reuters''. Retrieved October 5, 2018.</ref>

While Switzerland is famous for its banking secrecy, the level of secrecy has significantly declined, and it has ended in several areas, because of international pressure.<ref>Shields, Michael (October 5, 2018). [https://www.reuters.com/article/us-swiss-secrecy/era-of-bank-secrecy-ends-as-swiss-start-sharing-account-data-idUSKCN1MF13O Era of bank secrecy ends as Swiss start sharing account data]. ''Reuters''. Retrieved October 5, 2018.</ref>

===Global Economic Crisis===

===Global Economic Crisis===

[[File:Aerial view of Zurich.JPG|thumb|200px|A view of Zürich from the air.]]

[[File:Aerial view of Zurich.JPG|thumb|200px|A view of Zürich from the air.]]

Being a nation that depends upon exports for economic growth, and due to the fact that it is so closely linked to the economies of Western Europe and the United States, Switzerland was not able to escape recent slowdowns experienced in these countries. During most of the 1990s, the Swiss economy was Western Europe's weakest, with annual GDP growth averaging 0% between 1991 and 1997. Beginning in late 1997, the economy steadily gained momentum until peaking in 2000 with 3% growth in real terms. The economy returned to lackluster growth during 2001-2003, but has been growing at or above potential since 2004–2.5% per annum. The Swiss Economic Ministry reports that strong global demand, particularly in the U.S. and Asia, and better Euro zone growth has helped Switzerland’s economic recovery. Long-run economic growth, however, is predicated on structural reforms. In order to maximize its economic potential, Switzerland will need to push through difficult agrarian and competition policy reforms. These are essential if the government is to reduce its budget deficits and meet its 3% growth target.  

Being a nation that depends upon exports for economic growth, and due to the fact that it is so closely linked to the economies of Western Europe and the United States, Switzerland was not able to escape recent slowdowns experienced in these countries. During most of the 1990s, the Swiss economy was Western Europe's weakest, with annual GDP growth averaging 0% between 1991 and 1997. Beginning in late 1997, the economy steadily gained momentum until peaking in 2000 with 3% growth in real terms. The economy returned to lackluster growth during 2001-2003, but has been growing at or above potential since 2004–2.5% per annum. The Swiss Economic Ministry reports that strong global demand, particularly in the U.S. and Asia, and better Euro zone growth has helped Switzerland's economic recovery. Long-run economic growth, however, is predicated on structural reforms. In order to maximize its economic potential, Switzerland will need to push through difficult agrarian and competition policy reforms. These are essential if the government is to reduce its budget deficits and meet its 3% growth target.  

The recent economic upswing had some positive impact on the labor market. Unemployment decreased from 4.1% in December 2003 to 3.1% in March 2007. Swiss in the 15-25 age bracket continue to fight unemployment numbers with a rate of 5.4%, and hotel and restaurant industry workers with 10.4%. One-fourth of the country's full-time workers are unionized. In general, labor/management relations are good, mostly characterized by a willingness on both sides to settle disputes by negotiations rather than by labor action. About 600 collective bargaining agreements exist today in Switzerland and are regularly renewed without major problems. However, the mood is changing. The massive layoffs that resulted from both the global economic slowdown and major management scandals have strained the traditional Swiss "labor peace." Swiss trade unions encouraged strikes against several companies, including the national airline SWISS, Coca-Cola, and Orange (the French telecom operator), but total days lost to strikes remain among the lowest in the OECD. Uncertainties concerning the proper management of pension funds, and the prospect of a potential hike in the retirement age from 65 to 67 have stirred heated political debate.

The recent economic upswing had some positive impact on the labor market. Unemployment decreased from 4.1% in December 2003 to 3.1% in March 2007. Swiss in the 15-25 age bracket continue to fight unemployment numbers with a rate of 5.4%, and hotel and restaurant industry workers with 10.4%. One-fourth of the country's full-time workers are unionized. In general, labor/management relations are good, mostly characterized by a willingness on both sides to settle disputes by negotiations rather than by labor action. About 600 collective bargaining agreements exist today in Switzerland and are regularly renewed without major problems. However, the mood is changing. The massive layoffs that resulted from both the global economic slowdown and major management scandals have strained the traditional Swiss "labor peace." Swiss trade unions encouraged strikes against several companies, including the national airline SWISS, Coca-Cola, and Orange (the French telecom operator), but total days lost to strikes remain among the lowest in the OECD. Uncertainties concerning the proper management of pension funds, and the prospect of a potential hike in the retirement age from 65 to 67 have stirred heated political debate.

As part of the bilateral agreement on the taxation of savings signed in June 2003, Swiss banks will levy a withholding tax on EU citizens' savings income. The tax, which started on July 1, 2005, will increase gradually to 35% by 2011, with 75% of the funds being transferred to the EU.  

As part of the bilateral agreement on the taxation of savings signed in June 2003, Swiss banks will levy a withholding tax on EU citizens' savings income. The tax, which started on July 1, 2005, will increase gradually to 35% by 2011, with 75% of the funds being transferred to the EU.  

On November 26, 2006, the Swiss electorate approved a government bill to contribute 1 billion Swiss francs (about $800 million) to the 10 new EU member states. In a nationwide referendum, 53.4% of voters accepted the “Eastern Europe Cooperation Act,” which entitles the government to spend 1 billion Swiss francs on projects in primarily [[Central Europe]]an states over the next 10 years. Switzerland had pledged this contribution to share the burden of the EU’s eastern expansion in order to facilitate the conclusion of the second set of bilateral negotiations with the EU. The right-populist Swiss People’s Party (SVP), which prompted the referendum, was disappointed, but pleased that it mobilized a 47% opposition. The Eastern Europe Cooperation Act gives a new legal basis for Swiss aid to countries in Eastern Europe. The act has a 10-year term and replaces the former federal Law on Aid to Eastern Europe, which came into force in 1995. Since the fall of the Berlin Wall, Switzerland has spent SF 3.5 billion on about 1,000 aid projects in East-[[Central Europe]] to help countries in the region transform into market economies. Sixty percent of the SF 1 billion is to come from the budget of the departments of foreign and economic affairs, mainly from cuts in aid programs to other parts of the world. The remaining 40% will be taken from the regular budget of the federal administration. The funds are to be used on projects chosen by Switzerland and focused on education, trade promotion, environment, and internal security. The money is paid directly to the projects and does not go the EU cohesion fund in Brussels. Switzerland has no formal agreement with the European Union concerning these contributions. Instead, there is a Memorandum of Understanding (MOU) that sets out the general conditions of the Swiss commitment to the ten new EU member states. Under the MOU, almost half of the funding will go to Poland. Hungary's benefit will be SF 131 million, while the Czech Republic will receive SF 110 million.  

On November 26, 2006, the Swiss electorate approved a government bill to contribute 1 billion Swiss francs (about $800 million) to the 10 new EU member states. In a nationwide referendum, 53.4% of voters accepted the “Eastern Europe Cooperation Act,” which entitles the government to spend 1 billion Swiss francs on projects in primarily [[Central Europe]]an states over the next 10 years. Switzerland had pledged this contribution to share the burden of the EU's eastern expansion in order to facilitate the conclusion of the second set of bilateral negotiations with the EU. The right-populist Swiss People's Party (SVP), which prompted the referendum, was disappointed, but pleased that it mobilized a 47% opposition. The Eastern Europe Cooperation Act gives a new legal basis for Swiss aid to countries in Eastern Europe. The act has a 10-year term and replaces the former federal Law on Aid to Eastern Europe, which came into force in 1995. Since the fall of the Berlin Wall, Switzerland has spent SF 3.5 billion on about 1,000 aid projects in East-[[Central Europe]] to help countries in the region transform into market economies. Sixty percent of the SF 1 billion is to come from the budget of the departments of foreign and economic affairs, mainly from cuts in aid programs to other parts of the world. The remaining 40% will be taken from the regular budget of the federal administration. The funds are to be used on projects chosen by Switzerland and focused on education, trade promotion, environment, and internal security. The money is paid directly to the projects and does not go the EU cohesion fund in Brussels. Switzerland has no formal agreement with the European Union concerning these contributions. Instead, there is a Memorandum of Understanding (MOU) that sets out the general conditions of the Swiss commitment to the ten new EU member states. Under the MOU, almost half of the funding will go to Poland. Hungary's benefit will be SF 131 million, while the Czech Republic will receive SF 110 million.  

The Swiss federal government remains deeply divided over whether to eventually join the EU, and in a March 2001 referendum more than 70% of Swiss voters rejected rapid steps toward EU membership. The issue of EU membership is likely to be shelved for several years, if not a decade. In May 2005, the government said it could sign a framework agreement with the European Union, as an alternative to joining the organization, to encourage dialogue and create a platform for closer cooperation.

The Swiss federal government remains deeply divided over whether to eventually join the EU, and in a March 2001 referendum more than 70% of Swiss voters rejected rapid steps toward EU membership. The issue of EU membership is likely to be shelved for several years, if not a decade. In May 2005, the government said it could sign a framework agreement with the European Union, as an alternative to joining the organization, to encourage dialogue and create a platform for closer cooperation.